Q1 2025 Allcargo Gati Ltd Earnings Call Transcript
Key Points
- Allcargo Gati Ltd (BOM:532345) is now debt-free with a net cash positive of INR196 crores after a successful QIP of INR169 crores.
- The company reported a 33% growth in EBITDA for the Express business, reaching INR20 crores in Q1 FY25 compared to INR15 crores in Q4 FY24.
- Gross margin for the Express business improved by 100 basis points, standing at 27% for Q1 FY25.
- The company has successfully implemented Phase 1 of its infrastructure update and launched a new technology module named GATE (Gati Associate Tracking Engine).
- Allcargo Gati Ltd (BOM:532345) has appointed Ketan Kulkarni as the new Deputy Managing Director for Gati Express and Supply Chain Private Limited, further strengthening its managerial team.
- Total tonnage handled for Q1 FY25 decreased to 300,000 metric tons from 306,000 tons in Q4 FY24.
- Revenue from the Express business slightly declined to INR358 crores in Q1 FY25 from INR367 crores in Q1 FY24.
- The company faces persistent uncertainty around inflation outlook, impacting cost structures and pricing strategies.
- Despite improvements, the company still has a higher S&OP cost as a percentage of sales compared to competitors due to outdated technology.
- The Contract Logistics business, although high-margin, remains a small portion of the overall business, limiting its immediate impact on consolidated margins.
Ladies and gentlemen, good day, and welcome to Allcargo Gati Limited Q1 FY25 conference call hosted by Equirus Securities. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Jainam Shah from Equirus Securities. Thank you, and over to you, sir.
Thank you. Good afternoon, everyone, and thank you for joining us on Allcargo Gati Limited Q1 FY25 earnings conference call. We have with us Mr. Pirojshaw Sarkari, MD and CEO; and Mr. Anish Mathew, CFO.
I hope everyone had a chance to view the financial results and investor presentation, which presently posted on the company's website and stock exchanges. We will begin the call with opening remarks from the management followed by an open forum for Q&A.
Before we begin, I would like to point out that this conference call may contain forward-looking statements about the company, which are based on the beliefs of financial expectation of the company as of the date of this call.
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